Verizon Media is expanding its long-standing ad sales agreement with Microsoft as the telecom giant’s ad-tech unit seeks to solidify its position in the market.
The telecommunications offer side platform now represents display inventory for MSN and Outlook, adding video, search, native and the Xbox inventory that the ad-tech unit sells on Microsoft’s behalf.
After years of integrations, changes of direction and renameIof following the $ 4.8 billion acquisition of Yahoo in 2016, Verizon Media established its ad technology business as a scalable and viable offering in a market that is otherwise dominated by Google, Facebook, Amazon and The Trade Desk.
“This has been a line of growth,” said Iván Markman, commercial director of Verizon Media. “As you integrate, this line moves more slowly. Once you’ve onboarded, your teams can now focus a lot more, so you’ll start shipping capacity to market much faster. “
Verizon Media has been Microsoft’s preferred SSP since 2015, when the tech giant struck a deal with AOL, which Verizon had recently acquired at the time for $ 4.4 billion.
Despite its large investments in digital media, Verizon struggled to fit in its range of advertising offers under oath. In September 2018, Verizon wrote off Oath for $ 4.6 billion, valuing the company at just $ 200 million. In December, Tim Armstrong, former CEO of AOL and leader of Oath, left the company.
Now renamed Verizon Media, the company has apparently rebounded. Kevin Mannion, president and chief strategy officer of Advertiser Perceptions, said Verizon Media has “gained a lot of ground” over the past year and a half, adding that it has made significant progress in integrating its disparate offerings and by conveying a clearer value proposition to potential customers. .
“I wouldn’t have bet two years ago that Verizon would be able to get to where they are,” Mannion said.
Verizon Media operates the fourth most popular SSPs among publishers, according to a report released last May by Advertiser Perceptions.
The company’s demand-side platform also saw a 33% increase in accounts in the third quarter of 2020 from a year ago, Verizon CFO Matt Ellis said in the latest earnings call. of the society.
Microsoft and Verizon Media are the third and fourth busiest publishers in the United States, according to Comscore. Verizon Media is Microsoft’s preferred supplier for supplying Microsoft to the United States, United Kingdom, France, Italy, Canada, Germany, Japan, Brazil and Spain.